Talking Points:

• The markets have opened the new trading week further fading expected 'No Taper' optimism

• Benchmark S&P 500 has closed a third consecutive decline as the dollar and yen start to firm

• Yields and long-term trend support the risk-positive theme, but counter trend opportunities exist

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The market traded Fed Taper speculation for traditional risk trends quickly this past week. And, this week we have opened to the FX market's tentative collusion to the S&P 500's risk aversion move. Given the extended position of equities over the medium-term and short-term extremes for various currency pairs, many traders will be drawn to trading immediate reversals. However, potential does not necessarily equate to probability. In today's video, we weigh the opportunities for risk-based trades with particular emphases on the dollar and yen crosses.

Find out what event risk can threaten the trade setups discussed in today's video with the DailyFX Economic Calendar.